The State Bank of Pakistan (SBP) has reported a substantial reduction in the domestic current account deficit (CAD), particularly in September 2023, where it stood at just $8 million.

The current account deficit (CAD) in September 2023 also declined compared to a deficit of $360 recorded in the same month of the previous fiscal year (FY23). As of September 2023, the current account deficit had decreased by 95% year over year and 95% month over month.

Comparatively, during the first quarter of the financial year, the current account deficit amounted to $940.7 million, marking a significant improvement over the same period in the previous financial year when the deficit exceeded $2.25 billion.

Current Account Deficit (CAD) fell to $8 million in September 2023 compared to a deficit of $164 million in August 2023, and thus CAD improved by $156 million.https://t.co/q3LNv3HOB0 https://t.co/Od8ikVvXrd #SBPBOP pic.twitter.com/DGXEyF6C37
— SBP (@StateBank_Pak) October 19, 2023

This reduction in the current account deficit is aligned with the broader target set for the current financial year, aiming to keep the deficit at $6 billion.

Highlighting the positive trend, it's worth noting that in August 2023, the current account deficit was $16.4 million. In just one month, the current account deficit has shown significant improvement, marking a reduction of $156 million, as reported by the central bank.